Mining | Oil | Gas | | Politicians "missing the main game": SACOME - Politicians "missing the main game": SACOME Ind...

Politicians "missing the main game": SACOME

alt

Industry body wants $650m investment in SA's resources sector

South Australia’s main political parties have been advised that their policy commitments to date to grow the state’s mining future are not at a level to shift the state into top gear during the national resurgence in natural resources.

In response to a raft of policy announcements by the Labor and Liberal camps over recent days in the lead up to March 20 election, South Australia’s peak mining body - the South Australian Chamber of Mines and Energy (SACOME) - today described the commitments as “missing the main game”.

The industry says at least $650 million needs to be injected into the State’s mining and exploration sector in the form of infrastructure for power, water, transport and export, as well as workforce development and other programs, over the next five years.

This level of commitment would allow South Australia to capitalise on the global demand for the state’s untapped wealth of mineral commodities.

“We have to say in the first instance, we are pleased that both parties have pledged to extend the successful Plan for Accelerating Exploration (PACE). Both major parties understand the importance of supporting mineral exploration and processing mining applications efficiently,” SACOME’s chief executive Jason Kuchel said.

“But it is infrastructure the mining industry really needs most in South Australia. It is access to broader electricity grid networks, water, rail, road and port facilities that this sector needs - and that requires a bold plan. The number one ticket item is a Cape sized-capable bulk-commodities facility at Port Bonython.

“There is only so much individual companies can do in building infrastructure. It really needs a co-ordinated effort and a serious investment of government as well as private sector funds, to kick start the projects.

“The industry is not looking for a hand-out, but a leg-up because many smaller projects can pay for infrastructure through user charges, but are not in a position to make the capital investment upfront for major infrastructure.

“We have some concerns with announcements by both major parties. For example, the Liberals have committed to matching Labor initiatives - but only if they are provided for in forward estimates.

"On the other side of the fence, Labor has not matched the Liberal Party commitments to consider underwriting, even initially, tonnages for a Cape sized-capable bulk-commodities facility."

Photo: The Jacinth Ambrosia mine is a standout operation in SA.